Can anyone help me with this finance problem? Five years ago you purchased a bond with a $1000 face value. It had a 20 year remaining maturity, a 4% coupon rate (paid semi-annually), and the yield to maturity was 3%. Since then, inflation has driven interest rates up by 2%. If you sold your bond today, what would be your effective annual return?
Paper#3734 | Written in 18-Jul-2015Price : $25